USA ECONOMIC CONDITIONS:
Today’s sluggish economy has left millions of people struggling to financially make ends meet. Lou Dobb’s coined phrase “Assault on Middle Class” continues. Virtually every corner you turn screams inflation and rising expenses. The sky-high cost of fuel and other commodities is ultimately passed to us weary consumers. Salaries once adequate for providing comfortable family living are now stretched to limits, leaving many people in search of additional income sources to help bridge gap.
If you look at major expenses in average person’s life, it's easy to identify mortgage or rent obligations at top of list. Home ownership is one of biggest living expenses and frequently hardest to obtain.
According to the Federal Housing Finance Board, and data analyzed from over 23,000 home loans from over 75 lenders, U.S. national average purchase price for a single-family home reached $264,540 in October 2004. This average is up from $243,756 average for October 2003.
A $260,000 home loan financed at 6% interest will cost consumer an estimated whopping $301,179.29 in interest over course of 30 years. Shorten this loan to 15 years and home owner will be paying an estimated $2,200.00 per month with approximately $135,000 going to interest. These figures do not include taxes and insurance estimates so actual costs are even higher.